The U.S. Department of Justice (DOJ) has initiated an investigation into Nvidia following allegations that the tech giant has misused its dominant position in the artificial intelligence (AI) chip market. This inquiry comes as part of a broader scrutiny into the competitive practices within the rapidly evolving AI industry, reported by The Information.
Sources indicate that the DOJ has approached Nvidia's competitors, including AMD, to gather insights on these allegations. Central to the investigation is whether Nvidia imposes higher prices on customers who opt to purchase AI chips from rivals like AMD. Additionally, the DOJ is examining claims that Nvidia coerces customers into buying supplementary products, such as cables necessary for server connectivity.
In a statement addressing the report, a Nvidia spokesperson asserted that the company thrives on its merits, citing "decades of investment and innovation." They emphasized Nvidia's compliance with legal standards and its commitment to providing customers with a range of solutions. "We compete based on merit, ensuring NVIDIA is available across all platforms and allowing customers the freedom to choose the best solutions for their needs," the spokesperson remarked. They also assured that Nvidia is ready to cooperate fully with regulatory inquiries.
At the time of the report, neither Nvidia nor the DOJ had responded to requests for comment from CNBC. The news impacted Nvidia's market performance, with its shares falling 3.5% in premarket trading, mirroring a global downturn in semiconductor stocks.
This investigation into Nvidia highlights the increasing regulatory focus on the AI chip sector, underscoring the significance of fair competition in fostering innovation and consumer choice in the tech industry.
